Hyperliquid went live with its HIP-4 Outcome Markets on mainnet May 2, offering BTC daily binary contracts with zero fees. The move directly challenges Polymarket, the dominant prediction-market platform, by removing the cost barrier for traders.
What HIP-4 Brings to the Table
The new platform, called HIP-4, hosts binary outcome contracts that settle based on Bitcoin’s daily price movements. Traders can buy or sell contracts that predict whether BTC will close above or below a set level each day. Hyperliquid is promoting the zero-fee structure as its main draw — no maker or taker fees on any trades within the outcome markets.
Zero Fees as a Competitive Weapon
Polymarket charges a 2% fee on winning bets, plus network costs. By going to zero, Hyperliquid wants to attract volume from Polymarket’s user base. BTC daily binary contracts are already trading on HIP-4, and the platform is live for all users. Hyperliquid’s move comes as prediction markets see rising interest, especially around crypto price events.
Why BTC Binary Contracts?
Bitcoin’s daily price swings make it a natural fit for binary options. The contracts are simple: pick a direction, and if BTC settles on that side at the daily close, the contract pays out. Hyperliquid’s on-chain settlement means no counterparty risk beyond the smart contract. The platform is using its own liquidity to bootstrap the market, but details on liquidity provisions were not disclosed.
The launch follows months of testing on testnet. HIP-4 is now deployed on Hyperliquid’s own L1, which the team says offers faster finality than Ethereum-based alternatives like Polymarket. Whether that speed advantage will matter to traders remains an open question.
Trading is underway as of May 2. No date has been set for any fee changes or additional contract types.
